Thomas Bender

Multifamily Investment Sales in Southern California

[Jay Parsons @jayparsons]

KKR put out a paper last month with a strong pitch for multifamily investing, concluding: "The once-in-a-decade opportunity for real estate equity investors is complex, but also exciting."

Watch for moves... Appears KKR is thinking like Blackstone signaled before announcing acquisition of AIR.

Note that KKR recently announced acquisition of a student housing portfolio from (ironically) Blackstone, but this KKR report appears directed at conventional apartments.

Some notables from report:

- Report notes current challenges of maturing debt and peaking supply are "cyclical rather than secular."

"The secular trend is toward more demand, not less."

- "Performance has traditionally remained stable through economic cycles."

"As owners come under more pressure to sell assets, we see an exciting opportunity coming to buy high-quality properties below replacement cost while achieving attractive long-term yields."

- "A temporary period of oversupply may provide more attractive entry points."

- "Owners who can carry their investments through the next two years are poised to benefit from sustained structural demand and a pronounced shortage of new supply starting in 2026."

- "Scaled players will see opportunities first and have the freedom to deploy without much leverage, an essential component to success in this environment."

Link to report below...

[Thomas Bender @thomasbender11]

August 2023 #OrangeCounty home sales data. Lack of inventory and increased prices making a strong case for stability in #multifamily rents and occupancy.

[Thomas Bender @thomasbender11]

@ReidBennettCCIM Shoot me some more info on this Reid, may have a buyer for this. Thanks!

[Thomas Bender @thomasbender11]

@dtapscott @alextapscott I’m reading your book, Blockchain Revolution, and pages 269-284 are missing, with pages from Matthew Pearl’s The Dante Chamber in their place. Really enjoying your book and would love to read the entire thing!